The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.

(b) Terms of personal property leases

The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.

“(1) Regulations.—The regulations required to be prescribed under this title [see Tables for classification] or the amendments made by this title shall—

“(A) be prescribed in final form before the end of the 18-month period beginning on the designated transfer date; and

“(B) take effect not later than 12 months after the date of issuance of the regulations in final form.

“(2) Effective date established by rule.—Except as provided in paragraph (3), a section, or provision thereof, of this title shall take effect on the date on which the final regulations implementing such section, or provision, take effect.

“(3) Effective date.—A section of this title for which regulations have not been issued on the date that is 18 months after the designated transfer date shall take effect on such date.”

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–240effective on expiration of one year after Mar. 23, 1976, see section 6 ofPub. L. 94–240, set out as an Effective Date note under section
1667 of this title.

Section 504(a) ofPub. L. 90–321provided that this part is effective May 29, 1968.

Short Title of 2010 Amendment

Pub. L. 111–319, § 1,Dec. 18, 2010, 124 Stat. 3457, provided that: “This Act [amending section
1681m of this title and enacting provisions set out as a note under section
1681m of this title] may be cited as the ‘Red Flag Program Clarification Act of 2010’.”

Pub. L. 110–315, title X, § 1001,Aug. 14, 2008, 122 Stat. 3478, provided that: “This title [enacting section
1650 of this title and sections
1019d and
9709 of Title
20, Education, amending sections
1602,
1603,
1638, and
1640 of this title, section
2903 of Title
12, Banks and Banking, and section
1092 of Title
20, and enacting provisions set out as notes under sections
1638 and
1640 of this title, section
2903 of Title
12, and section
9709 of Title
20] may be cited as the ‘Private Student Loan Transparency and Improvement Act of 2008’.”

Pub. L. 110–289, div. B, title V, § 2501,July 30, 2008, 122 Stat. 2855, provided that: “This title [amending sections
1638 and
1640 of this title and sections
24 and
338a of Title
12, Banks and Banking, and enacting provisions set out as a note under section
1638 of this title] may be cited as the ‘Mortgage Disclosure Improvement Act of 2008’.”

Pub. L. 110–241, § 1,June 3, 2008, 122 Stat. 1565, provided that: “This Act [amending section
1681n of this title and enacting provisions set out as notes under section
1681n of this title] may be cited as the ‘Credit and Debit Card Receipt Clarification Act of 2007’.”

Pub. L. 104–29, § 1,Sept. 30, 1995, 109 Stat. 271, provided that: “This Act [enacting section
1649 of this title, amending sections
1605,
1631,
1635,
1640, and
1641 of this title, and enacting provisions set out as notes under section
1605 of this title] may be cited as the ‘Truth in Lending Act Amendments of 1995’.”

Pub. L. 103–325, title I, § 151,Sept. 23, 1994, 108 Stat. 2190, provided that: “This subtitle [subtitle B (§§ 151–158) of title I of Pub. L. 103–325, enacting sections
1639 and
1648 of this title, amending sections
1602,
1604,
1610,
1640,
1641, and
1647 of this title, and enacting provisions set out as notes under this section and section
1602 of this title] may be cited as the ‘Home Ownership and Equity Protection Act of 1994’.”

Short Title of 1992 Amendment

Pub. L. 102–537, § 1,Oct. 27, 1992, 106 Stat. 3531, provided that: “This Act [enacting section
1681s–1 of this title, amending section
1681a of this title, and enacting provisions set out as a note under section
1681a of this title] may be cited as the ‘Ted Weiss Child Support Enforcement Act of 1992’.”

Short Title of 1988 Amendments

Pub. L. 100–709, § 1,Nov. 23, 1988, 102 Stat. 4725, provided that: “This Act [enacting sections
1637a,
1647, and
1665b of this title, amending sections
1632 and
1637 of this title, and enacting provisions set out as notes under section
1637a of this title] may be cited as the ‘Home Equity Loan Consumer Protection Act of 1988’.”

Pub. L. 100–583, § 1,Nov. 3, 1988, 102 Stat. 2960, provided that: “This Act [amending sections
1610,
1632,
1637,
1640, and
1646 of this title and enacting provisions set out as a note under section
1637 of this title] may be cited as the ‘Fair Credit and Charge Card Disclosure Act of 1988’.”

Short Title of 1981 Amendment

Pub. L. 97–25, § 1,July 27, 1981, 95 Stat. 144, provided: “That this Act [amending sections
1602 and
1666f of this title, section
29 of Title
12, Banks and Banking, and sections
205 and
212 of Title
42, The Public Health and Welfare; enacting provisions set out as notes under this section and sections
1602 and
1666f of this title; and amending provisions set out as notes under sections
1602 and
1666f of this title] may be cited as the ‘Cash Discount Act’.”

Pub. L. 94–240, § 1,Mar. 23, 1976, 90 Stat. 257, provided that: “This Act [enacting sections
1667 to
1667e of this title, amending this section and section
1640 of this title, and enacting provisions set out as a note under section
1667 of this title] may be cited as the ‘Consumer Leasing Act of 1976’.”

Pub. L. 94–239, § 1(a),Mar. 23, 1976, 90 Stat. 251, provided that: “This Act [enacting section
1691f of this title, amending this section and sections
1691b,
1691c,
1691d,
1691e of this title, repealing section
1609 of this title, enacting provisions set out as notes under this section, and repealing provision set out as a note under this section] may be cited as the ‘Equal Credit Opportunity Act Amendments of 1976’.”

Section 1(c) ofPub. L. 94–239repealed section 501 ofPub. L. 93–495, title V, Oct. 28, 1974, 88 Stat. 1521, which provided that subchapter IV of this chapter and notes set out under section
1691 were to be cited as the “Equal Credit Opportunity Act”.

Short Title of 1974 Amendment

Pub. L. 93–495, title III, § 301,Oct. 28, 1974, 88 Stat. 1511, provided that: “This title [enacting sections
1666 to
1666j of this title, amending this section and sections
1602,
1610,
1631,
1632, and
1637 of this title, and enacting provision set out as a note under section
1666 of this title] may be cited as the ‘Fair Credit Billing Act’.”

Short Title

Pub. L. 90–321, § 1,May 29, 1968, 82 Stat. 146, provided that: “This Act [enacting this chapter, sections
891 to
896 of Title
18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections
1631 and
1671 of this title, and section
891 of Title
18] may be cited as the ‘Consumer Credit Protection Act’.”

Section 709 of title VII of Pub. L. 90–321, as added by section 1(b) ofPub. L. 94–239, Mar. 23, 1976, 90 Stat. 251, provided that: “This title [enacting subchapter IV of this chapter and notes set out under section
1691 of this title] may be cited as the ‘Equal Credit Opportunity Act’.”

Pub. L. 90–321, title V, § 501,May 29, 1968, 82 Stat. 167, provided that: “If a provision enacted by this Act [see Short Title note above], is held invalid, all valid provisions that are severable from the invalid provision remain in effect. If a provision enacted by this Act is held invalid in one or more of its applications, the provision remains in effect in all valid applications that are severable from the invalid application or applications.”

Exemption or Modification of Mortgage Disclosure Requirements

Pub. L. 111–203, title XIV, § 1405(b),July 21, 2010, 124 Stat. 2142, provided that: “Notwithstanding any other provision of this title [see Tables for classification], in order to improve consumer awareness and understanding of transactions involving residential mortgage loans through the use of disclosures, the Board may, by rule, exempt from or modify disclosure requirements, in whole or in part, for any class of residential mortgage loans if the Board determines that such exemption or modification is in the interest of consumers and in the public interest.”

“(A) the ability of consumers to avoid receiving written offers of credit or insurance in connection with transactions not initiated by the consumer; and

“(B) the potential impact that any further restrictions on providing consumers with such written offers of credit or insurance would have on consumers.

“(2) Report.—The Board shall submit a report summarizing the results of the study required under paragraph (1) to the Congress not later than 12 months after the date of enactment of this Act [Dec. 4, 2003], together with such recommendations for legislative or administrative action as the Board may determine to be appropriate.

“(3) Content of report.—The report described in paragraph (2) shall address the following issues:

“(A) The current statutory or voluntary mechanisms that are available to a consumer to notify lenders and insurance providers that the consumer does not wish to receive written offers of credit or insurance.

“(B) The extent to which consumers are currently utilizing existing statutory and voluntary mechanisms to avoid receiving offers of credit or insurance.

“(C) The benefits provided to consumers as a result of receiving written offers of credit or insurance.

“(D) Whether consumers incur significant costs or are otherwise adversely affected by the receipt of written offers of credit or insurance.

“(E) Whether further restricting the ability of lenders and insurers to provide written offers of credit or insurance to consumers would affect—

“(i) the cost consumers pay to obtain credit or insurance;

“(ii) the availability of credit or insurance;

“(iii) consumers’ knowledge about new or alternative products and services;

“(iv) the ability of lenders or insurers to compete with one another; and

“(v) the ability to offer credit or insurance products to consumers who have been traditionally underserved.”

[For definitions of terms used in section 213(e) ofPub. L. 108–159, set out above, see section 2 ofPub. L. 108–159, set out as a Definitions note under section
1681 of this title.]

Pub. L. 103–325, title I, § 157,Sept. 23, 1994, 108 Stat. 2197, provided that: “During the period beginning 180 days after the date of enactment of this Act [Sept. 23, 1994] and ending 2 years after that date of enactment, the Board of Governors of the Federal Reserve System shall conduct a study and submit to the Congress a report, including recommendations for any appropriate legislation, regarding—

“(1) whether a consumer engaging in an open end credit transaction (as defined in section 103 of the Truth in Lending Act [15 U.S.C. 1602]) secured by the consumer’s principal dwelling is provided adequate protections under Federal law, including section 127A of the Truth in Lending Act [15 U.S.C. 1637a]; and

“(2) whether a more appropriate interest rate index exists for purposes of subparagraph (A) of section
103(aa)(1) [now 103(bb)(1)] of the Truth in Lending Act (as added by section 152(a) of this Act [15 U.S.C. 1602(bb)(1)(A)]) than the yield on Treasury securities referred to in that subparagraph.”

“(a) Hearings.—Not less than once during the 3-year period beginning on the date of enactment of this Act [Sept. 23, 1994], and regularly thereafter, the Bureau, in consultation with the Advisory Board to the Bureau, shall conduct a public hearing to examine the home equity loan market and the adequacy of existing regulatory and legislative provisions and the provisions of this subtitle [see Short Title of 1994 Amendment note above] in protecting the interests of consumers, and low-income consumers in particular.

Pub. L. 97–25, title II, § 202,July 27, 1981, 95 Stat. 145, directed Board of Governors of Federal Reserve System, not later than 2 years after July 27, 1981, to prepare a study and submit its findings to Congress on the effect of charge card transactions upon card issuers, merchants, and consumers.

Inference of Legislative Intent in Section Captions and Catchlines

Pub. L. 90–321, title V, § 502,May 29, 1968, 82 Stat. 167, provided that: “Captions and catchlines are intended solely as aids to convenient reference, and no inference as to the legislative intent with respect to any provision enacted by this Act [enacting this chapter, section
891 to
896 of Title
18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections
1631 and
1671 of this title, and section
891 of Title
18] may be drawn from them.”

Grammatical Usages

Pub. L. 90–321, title V, § 503,May 30, 1968, 82 Stat. 167, provided that: “In this Act [enacting this chapter, sections
891 to
896 of Title
18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections
1631 and
1671 of this title, and section
891 of Title
18]:

“(1) The word ‘may’ is used to indicate that an action either is authorized or is permitted.

“(2) The word ‘shall’ is used to indicate that an action is both authorized and required.

“(3) The phrase ‘may not’ is used to indicate that an action is both unauthorized and forbidden.